‘Unallowable’ Coronavirus Stimulus Spending Highlights Growing Costs For Salaries
The University of Wisconsin System shows the latest financial snapshot highlighting the growing costs of salaries and benefits, yet a tiny potential for misspent coronavirus stimulus money. According to the released report of the Legislative Bureau which looks at the UW System’s financial statements for the years ended June 30, 2022, and June 30, 2021, they noted that the UW’s net position increased from June 2021 until June 2022.
According to a published post by The Center Square, the auditors stated that the net position provides a measure of overall financial condition. On a GAAP basis, UW System’s net position was $6.4 billion as of June 30, 2022, and $6.0 billion as of June 30, 2021. The given reports stated that the UW’s unrestricted net position went from a negative $155.5 million as of June 30, 2021, to a negative $209.6 million as of June 2022.
As stated by the auditors, the decrease in Unrestricted Net Position is a result of an increase in assets from restricted sources, such as the net pension assets, an OPEB asset, and federal revenues, whereas its liabilities and other obligations exceeded available unrestricted assets.
The University of Wisconsin System Latest Financial Snapshot
The university’s expenses also show that they spent money that jumped 8% between June of last year and June of this year. The audit states that there is an increase of 5.7% in salaries and a 5% increase in benefits costs.
The review of supporting documentation for 116 transactions found that UW institutions used $48,900 for costs that were unallowable by criteria that the federal government established. This includes offsetting lost revenue from the sale of alcohol at sporting and other events, covering overhead costs of advertising and student recruitment, and showing a film, for entertainment purposes during a pre-semester student program.
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